Earnings Preview: PetSmart

PetSmart (NASDAQ:PETM) is expected to report Q3 earnings after the market close on Wednesday, November 18 with a conference call scheduled for 4:30 pm ET.

Guidance

Analysts are looking for a profit of 28c on revenue of $1.28B. The consensus range is 22c-29c for EPS, and revenue of $1.27B-$1.3B, according to First Call. In October, PetSmart raised its Q3 EPS guidance to 25c-29c from 20c-24c and FY09 EPS guidance to $1.43-$1.51 from $1.37-$1.45 vs. consensus $1.50. The company still expects Q3 same-store sales to be essentially flat, but noted the raised guidance was due to slightly better than expected product margin rates and lower than expected expenses. For the year, PetSmart expects a free cash flow yield in the low double digits.

Analyst Views

Goldman Sachs recently upgraded shares of the pet supplies retailer to Buy from Neutral due to improved profitability and on an expectation of higher sales. The firm said PetSmart remains the price leader within the pet specialty sector. Wedbush Morgan believes Q3 EPS will be near the high end of its guidance, also noting that the company appears to be the best positioned for a recovery among pet retailers.

We only use your contact details to reply to your request for more information.We do not sell the personal contact data you submit to anyone else.

Thank you for your interest in Seeking Alpha PROWe look forward to contacting you shortly for a conversation.

Thank you for your interest in Seeking Alpha PRO

Our PRO subscription service was created for fund managers, and the cost of the product is
prohibitive for most individual investors.
PRO Alerts is our flagship product for individual investors who want to be faster
and smarter about their stocks. To learn more about it, click here.
If you are an investment professional with over $1M AUM and received this message
in error, click here and you will be contacted shortly.

Thank you for your interest in Seeking Alpha PROWe look forward to contacting you when we have an individual investor product ready!